The quest by the GCSCA, the umbrella body of susu collectors in the country, follows a directive from the BoG under its new operating rules and guidelines for microfinance institution to register with their respective association to enable them get operational license from the bank. Mr Asamany admitted that although the registered members fell below the industry figure, he said his outfit was optimistic that more members would be registered by the end of the second quarter of On what the association was doing to get more members registered, the acting president said GCSCA had instructed all its registered members across the country to report any unregistered susu operator operating within their defined geographical area to their executives in the districts.
Stephen Gyasi Jnr explains how the traditional susu system has evolved into its modern counterpart.
Today, they have become the most ubiquitous firms in the country, especially in regional capitals. The proliferation of microfinance firms is such that it is even Susu in ghana to outdo the number of charismatic churches that spring up by the day across the country.
The Banking Act calls for job creation, the enhancement of local skills and knowledge and the strengthening of the financial sector through expansion of investment and retail banking instruments.
In the past, susu, the system whereby money was kept in sealed, small wooden boxes to be retrieved later used to be the traditional way of saving. It evolved to the practice whereby money was collected from house to house by an individual who kept it and returned to its owners after 30 days with no interest changing hands.
That trend was further modified to the point where men would collect money and deposit it in banks, to be returned to the customer when he needed it.
However, interest that accrued on the deposits was for the collector alone. These various forms of savings have led to the modern microfinance sector of the financial industry.
While it is helping to bank the unbanked, some players within the mainstream financial sector still see the development as an advanced susu scheme. The mode of operation of these institutions is not much different from the house-to-house susu collection system, differing only perhaps in its name and the computerisation of operations.
Today, the house-to-house money-collection system, very much an intrinsic part of the microfinance industry, has taken the form of mobile banking. The microfinance system targets low-income earners who are not prepared to be frustrated by the red tape of the mainstream financial sector.
Its agents, conspicuously branded, move from markets to residential areas to attract prospective customers to sign on for small loans, savings, insurance or funds-transfer services. Their marketing teams use persuasive talk to woo their targets. British-trained chartered accountant, Elvis K Gyasi, managing director of Accra-based microcredit company, Financial Republic, a new addition to the sprawling microfinance sector in Ghana, says: While some microfinance companies are able to give loans in less than 24 hours, others take days to deliver but still get their share of clients from the largely non-banking customers.
But the future of the microfinance industry may be threatened if all players decide to metamorphose into full banking operations, as has been the case in the past. The fast-growing UT Bank was, until three years ago, one of the leading microcredit companies in the country, doling out loans in 48 hours to customers: Gyasi has similar intentions: Categories of regulated activities under the Act have increased from a single tier to four tiers, to include susu companies, susu collectors, moneylenders and financial NGOs.
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Activities under the fourth tier include the operations of individual susu collectors, susu enterprises, individual moneylenders and money-lending enterprises.
However, each registered member of an umbrella association shall contribute to an insurance fund to be set up by the association. Regulations for first tier rural and community banks, savings and loans companies, and other financial intermediaries already regulated under the Banking Act remains unchanged.
The new licensing requirements are expected to take effect within six months. Companies operating the susu business are already confident of better prospects in the microfinance industry with the new Central Bank regulation.Below is a list of various hotels in Ghana.
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The scope of the role We are looking for Mining Operators and Trainers who want to work with Immersive Technologies in Ghana. We work closely with many customers in this region. List of Susu companies and services in Ghana. Search for Susu with Addresses, Phone numbers, Reviews, Ratings and Photos on Ghana Business Directory.
1. Evolution of the Microfinance Sub-Sector in Ghana. Indeed, the concept of microfinance is not new in Ghana. There has always been the tradition of people saving and/or taking small loans from individuals and groups within the context of self-help to start businesses or farming ventures.
Susu Economics The History of Pan-African Trade, Commerce, Money and Wealth (pub. by 1stBooks Library, Bloomington, Indiana),is a powerful book.